Buying a home can be a very exciting time in your life, especially for the first time home buyer! Many homebuyers are unsure of what to do when they start on their journey to homeownership, and making mistakes early on can lead to big losses of time and money. Be a smarter buyer and avoid these common mistakes homebuyers make.
Mistake #1: Not working with a Buyer’s Agent.
Going it alone and not working with a Buyer’s Agent is the top on the list of most common mistakes homebuyers make. Many times, the reason for this stems from the belief that using a Buyer Agent’s services will cost a homebuyer money up front.
There are no upfront fees when you work with a Buyer’s Agent.
Here in Arizona, most Buyer Agents do not get paid until the home closes. In fact, working with a Buyer’s Agent early in the homebuying process can actually save you both time (see Mistake #2) and money, because:
Buyers usually lose when only working with the Seller’s Agent.
Trying to buy a home without buyer representation is a huge mistake. It’s vital for a homebuyer to understand that the Seller’s Agent, also known as the Listing Agent, works for the Seller. It is the Listing Agent’s priority to get the most money and best terms for their client, the Seller.
Buyers win when working with a Buyer’s Agent.
Working with an experienced, knowledgeable Buyer’s Agent will help you to:
- Quickly learn how to establish a home’s value.
- Understand the current home buying market and what to expect from your buying competition.
- Navigate the complexities of the Arizona Purchase Contract and use these complexities to your advantage.
- Get the best deal possible on your future home!
Get your buyer representation early in your home buying process.
Use your Buyer’s Agent to your advantage. Let them educate you about the home buying process, home values and financing well before you put your chips on the table.
Mistake #2: Underestimating or overestimating what you can afford.
A direct byproduct of Mistake #1 – Not having a realistic price range established early on is near the top of common mistakes homebuyers make. Looking at homes that are not within your price range is a huge waste of time!
Many times, as Realtors, we recommend that a buyer get to know the real estate market, by taking time to research the homes, areas and amenities that exist within their price range. It becomes a real challenge for a homebuyer to focus their time and energy researching where and what to buy when they don’t know what they can afford.
10 minutes can make the difference.
Believe it or not, a homebuyer can usually remedy this mistake, at no cost to them, within 10 minutes of contacting a lender. Usually, one quick conversation with one of our preferred lenders will put you on the right path towards your optimal purchase price. Not only that, they can help you to understand what you might need to do, if you have any credit challenges.
Once you are armed with the knowledge of what you can afford, you can dial in on your target market with pin point accuracy.
Let others waste their time. You are too well informed for that.
Mistake #3: Not using the most reliable and accurate home search tools available.
Another one of the common mistakes that homebuyers make is not going to the source of the information, when searching for homes online. This is another huge time killer.
Don’t search for homes on the big 3rd party search engines. This is not reliable data.
The most up-to-date information available comes with a live link to the Arizona Regional MLS (Multiple Listing Service).
Don’t rely on old data.
You can search for homes just like an agent on this website and the search tool is linked directly to the MLS. As soon as any changes have been made (price changes, new photos, going under contract) in the MLS, you will see it on this site! No more looking into and researching a home that is already under contract!
Avoiding these mistakes will put you well ahead of your home buying competition.
Now that you are armed with this knowledge, you can enter confidently into the homebuying market. You have the advantage to make the best home buying decisions!
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